What’s the Right Amount of R&D?

One may wonder, what is the “right” amount of research and development (R&D)? Should a company spend a lot on potential future projects or not? It’s understood that most R&D expenditures will not yield fruit. The vast bulk will never generate profitable businesses or even come to market. How to decide who to underwrite among all those nerdy scientists doing inexplicable things in their labs?

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